• Dated 20^th October, 2022

Exclusion of Solar power plants and projects from Project import regulations.

The CBIC vide Notification 54/2022-Customs dated 19th October'2022 amended the Project Import Regulation, 1986 to excluded all "Solar power plant" or "Solar power project" effective from 20th October'2022.

After increase in Basic Customs duty rate from 1st April'2022 from Zero to 40% on Solar Module and from zero to 25% on Solar cell, project import was considered by renewable power manufacturer as an alternative source to reduce capital cost.With such changes in Project import Regulations, it would be interesting to know, how Power distribution company or State Utility would compensate power developers on account change in law, such a high Customs duty impact by increase in power tariff fixed prior to April'2022.